diff --git a/.circleci/config.yml b/.circleci/config.yml
index c14af2dfc..fe86da366 100644
--- a/.circleci/config.yml
+++ b/.circleci/config.yml
@@ -1,4 +1,6 @@
-version: 2
+version: 2.1
+orbs:
+  codecov: codecov/codecov@3.2.3
 
 defaults: &defaults
   docker:
@@ -100,6 +102,23 @@ jobs:
           command: |
             tox -e typechecks
 
+  upload_codecov:
+    docker:
+      - image: circleci/python:3.9.0
+    working_directory: ~/project
+    steps:
+      - checkout:
+          path: ~/project
+      - run:
+          name: Run tests and collect coverage
+          command: |
+            pip install --upgrade pip
+            pip install -r requirements.txt
+            pip install -r test_requirements.txt
+            coverage run -m pytest -v
+            coverage report
+      - codecov/upload
+
   package_and_upload_to_pypi:
     <<: *defaults
     steps:
@@ -127,6 +146,7 @@ workflows:
       - test_style
       - test_docs
       - test_type
+      - upload_codecov
       - package_and_upload_to_pypi:
           requires:
             - test_feature_engine_py38
diff --git a/.coveragerc b/.coveragerc
new file mode 100644
index 000000000..fe137b32d
--- /dev/null
+++ b/.coveragerc
@@ -0,0 +1,15 @@
+# configuration for coverage.py
+
+[run]
+branch = True
+source = feature_engine
+include = */feature_engine/*
+omit =
+    */setup.py
+
+
+[report]
+exclude_lines =
+    pragma: no cover
+
+show_missing = True
\ No newline at end of file
diff --git a/README.md b/README.md
index 49e749111..046177544 100644
--- a/README.md
+++ b/README.md
@@ -5,14 +5,15 @@
 [![PyPI version](https://badge.fury.io/py/feature-engine.svg)](https://badge.fury.io/py/feature-engine)
 [![Conda https://anaconda.org/conda-forge/feature_engine](https://anaconda.org/conda-forge/feature_engine/badges/installer/conda.svg)](https://anaconda.org/conda-forge/feature_engine)
 [![CircleCI https://app.circleci.com/pipelines/github/feature-engine/feature_engine](https://img.shields.io/circleci/build/github/feature-engine/feature_engine/main)](https://app.circleci.com/pipelines/github/feature-engine/feature_engine?)
+[![codecov](https://codecov.io/github/feature-engine/feature_engine/branch/master/graph/badge.svg?token=ZBKKSN6ERL)](https://codecov.io/github/feature-engine/feature_engine)
 [![Documentation Status https://feature-engine.readthedocs.io/en/latest/index.html](https://readthedocs.org/projects/feature-engine/badge/?version=latest)](https://feature-engine.readthedocs.io/en/latest/index.html)
 [![Join the chat at https://gitter.im/feature_engine/community](https://badges.gitter.im/feature_engine/community.svg)](https://gitter.im/feature_engine/community)
-[![Sponsorship https://www.trainindata.com/](https://img.shields.io/badge/Powered%20By-TrainInData-orange.svg)](https://www.trainindata.com/)
 [![Downloads](https://pepy.tech/badge/feature-engine)](https://pepy.tech/project/feature-engine)
 [![Downloads](https://pepy.tech/badge/feature-engine/month)](https://pepy.tech/project/feature-engine)
 [![DOI](https://zenodo.org/badge/163630824.svg)](https://zenodo.org/badge/latestdoi/163630824)
 [![DOI](https://joss.theoj.org/papers/10.21105/joss.03642/status.svg)](https://doi.org/10.21105/joss.03642)
 [![first-timers-only](https://img.shields.io/badge/first--timers--only-friendly-blue.svg?style=flat-square)](https://www.firsttimersonly.com/)
+[![Sponsorship https://www.trainindata.com/](https://img.shields.io/badge/Powered%20By-TrainInData-orange.svg)](https://www.trainindata.com/)
 
 
 [<img src="https://raw.githubusercontent.com/feature-engine/feature_engine/main/docs/images/logo/FeatureEngine.png" width="248">](http://feature-engine.readthedocs.io)
diff --git a/test_requirements.txt b/test_requirements.txt
index 13086c26b..42ebfeb9b 100644
--- a/test_requirements.txt
+++ b/test_requirements.txt
@@ -3,6 +3,7 @@ pytest>=5.4.1
 
 # repo maintenance tooling
 black>=21.5b1
+coverage>=6.4.4
 flake8>=3.9.2
-mypy>=0.740
 isort>=5.8.0
+mypy>=0.740
diff --git a/tox.ini b/tox.ini
index caec17dba..627cdc297 100644
--- a/tox.ini
+++ b/tox.ini
@@ -1,5 +1,5 @@
 [tox]
-envlist = py38, py39, py310, docs, stylechecks, typechecks
+envlist = py38, py39, py310, codecov, docs, stylechecks, typechecks
 skipsdist = true
 
 [testenv]
@@ -8,6 +8,7 @@ envdir = {toxworkdir}/unit_tests
 
 setenv =
   PYTHONPATH=.
+  COVERAGE_RCFILE = {envtmpdir}/coveragerc
 
 commands =
     pytest tests
@@ -25,6 +26,15 @@ deps =
 deps =
     -rtest_requirements.txt
 
+[testenv:codecov]
+deps =
+	-rtest_requirements.txt
+commands_pre =
+    {envpython} -c 'from pathlib import Path; Path(r"{env:COVERAGE_RCFILE}").write_text(Path(".coveragerc").read_text())'
+commands =
+    coverage run -m pytest -v
+    coverage report
+
 [testenv:docs]
 deps = 
 	-r docs/requirements.txt